Analysis of Usage of Internet Banking Facilities in Sri Lanka

Abstract

The existence of information technology (IT) has stepped many industries. One of the main industries which have been greatly impacted by information technology is the banking industry. Internet banking is the trend of the present future. It provides enormous benefits to consumers in terms of ease and cost of transactions, either through Internet, telephone or other electronic devices. Internet Banking has become one of the most essential technological stuffs in the financial industry. Internet banking as the provision of financial services and markets, use electronic communication and computation. In practice, Internet banking includes internet payment also called e-payment, internet trading, and internet-banking. Sri Lankans are now enjoying Internet banking facilities via internet, where it was first introduced in Sri Lanka in March 1999. In the banks in some parts of Sri Lanka, customers are still in their inception. For instance, banking users in Eastern province are less adopted to internet banking compared to the banking users in western province. Sri Lankan banks are trying to popularize the concept of Internet banking among their customers. Compared to some developed and developing countries, the usage of Internet to involve in banking activities is at an initial stage in Sri Lanka and it is mainly restricted to checking bank balances. This analytical research tries to analyze the pattern using internet banking and the factors affecting customers to use internet banking in Sri Lanka. This research has found that internet banking is in its infant stage in Sri Lanka, and it experiences a dramatic growth after 2010.